MUSKEGON – Community leaders from a cross-section of organizations concerned with the continued redevelopment of downtown Muskegon heard about the importance of the Morris Street parking lot.

Hye Soo Nah | Muskegon ChronicleThe construction site of the new Social Security building on Morris Avenue is just part of the 9 acres owned by the Community Foundation for Muskegon County.

Planning consultant Howard Kohn told the assembled group Thursday afternoon that the nine-acre parking lot between Morris Avenue and Shoreline Drive is a key link between the downtown and the Muskegon Lake shoreline.

The foundation is being advised to create a bold plan for redevelopment of what was once the Michigan Consolidated Gas Co. property. At the center of the plan is a “market” but that would be in conjunction with multi-tenant offices, residential units and specialty retail space.

“This property bridges the gap between the water and the downtown,” Kohn said. “But we have to create something different. It has to create a buzz and that will probably be controversial.”

Hearing the Chesapeake Group’s ideas for the Morris Street lot were foundation trustees along with officials from the city of Muskegon, Muskegon Area First, Downtown Muskegon Now! and the Muskegon Lakeshore Chamber of Commerce. The foundation purchased the site from former Muskegon Mall owner Richard Perlman of Chicago in 2007 for $1.4 million as a way to have community control of the important parcel.

The Morris site has been cleared and capped with a parking surface to contain toxic contaminants found on the site from past uses. Kohn said that with proper engineering and design, all of the suggested uses are possible if the environmental containment on the site is not disturbed.

Part of the Chesapeake Group’s work for the community foundation was research on the concepts of farmers’ markets and more general “markets.” The city of Muskegon operates a seasonal farmers’ market on the southeast edge of downtown and past suggestions of moving it caused major opposition among some customers and farmers.

However, the Kohn plan is not based on a basic farmers’ market selling local produce on limited days and hours of the week during the summer but a year-round “market” that would have permanent vendors along with seasonal outlets. The general market would be heavily food-based but also would sell arts, crafts and garden products among others, Kohn said.

With a year-round market at the heart of the development, the Chesapeake Group market analysis found that the site could support 25,000 square feet of specialty retail. The emphasis would be on small businesses rather than chain outlets but the larger national tenants could be interested in the development, Kohn said.

Hye Soo Nah | Muskegon ChronicleChris Howorth, left, and Adam Kosten work at the construction site of the new Social Security building on Morris Avenue.

“The property has outstanding views of the water for potential restaurants,” Kohn said, recommending buildings be at least two-stories tall to capture the best views of both the downtown and Muskegon Lake.

The Chesapeake Group plan calls for 31,000 square feet of multi-tenant office space and about 70 housing units. The development would be geared toward both young professionals and the growing number of “empty-nest” households of the aging Baby Boomer generation.

“Of the markets suggested, residential would be the weakest component,” Kohn said. “The current downtown redevelopment is nice and beautiful but it is not different or unique from other developments in the area or across the country. This has to be really different to attract the expected market.”

Mayor Steve Warmington picked up on the need for the Morris Street property to be something completely different for the Muskegon community.

“I like what you are saying,” Warmington told Kohn. “We need to think outside of our generational box. We want to attract young people, but what do they want? They need to be at the table giving us ideas.”

The foundation has been approached by an unnamed developer with interest on redeveloping the former gas company property, according to foundation President Chris McGuigan. Discussions continue, she said.

In the meantime, Missing Link Group LLC – an investment group created by Grand Rapids developer Bob Dykstra – has secured a 10-year lease to construct a new Social Security office for the Muskegon area at 340 Morris. Missing Link has purchased the first acre from the foundation of the nine available.

With a contract from the General Services Administration, Dykstra has hired the Wolverine Building Group of Grand Rapids, which has begun the $1.4 million, 11,000-square-foot office building for the federal government.

The Social Security building is expected to be completed by spring or early summer, Dykstra and federal officials have said.

In the meantime, Kohn and the Chesapeake Group will begin serious negotiations with interested developers wanting to develop the remainder of the Morris Street lot. The Baltimore consultants advised the foundation and the Downtown Muskegon Development Corp. on the initial redevelopment plans for the former Muskegon Mall site that is the historic central business district of the city.

Over the years, the Chesapeake Group has done planning work for the city of Muskegon on various master plans. It was brought back to Muskegon last year by the foundation with the assistance of the Alcoa Howmet community fund to offer concepts for the development of the Morris Street lot.